You can set aside up to $245 a month to cover these expenses if your employer offers such a program.
That’s a big change from last year, when employees could set aside up to $240 a month to park, but only $125 a month for transit expenses.
"Someone in the highest federal tax bracket – 30 to 39.6 percent – could save about $570 a year. Someone in the 15 percent tax bracket could save about $260 a year," said Lisa Greene-Lewis, lead CPA at the American Tax and Financial Center at TurboTax.
And there’s more good news: Congress made the change retroactive. It’s as if the higher limit of $240 had been in effect for transit riders all last year.
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A bigger take break for those who take public transit